ServiceNow (NYSE:NOW) Price Target Lowered to $118.00 at Robert W. Baird

Key Points

• Robert W. Baird cut its price target on ServiceNow to $118 (from $125) while keeping an "outperform" rating, though the MarketBeat consensus target remains much higher at $170.51 and the stock's average analyst rating is "Moderate Buy."
• ServiceNow's Q1 results showed $0.97 EPS (in line) and revenue of $3.77B (slightly above expectations), and management raised its annual subscription-revenue outlook citing strong AI-driven demand.
• Near-term headwinds include the closed Armis acquisition, which is expected to dent operating margins (~75 bps full year, ~125 bps in Q2), and delayed large Middle East deals that created an estimated ~75 bps revenue shortfall this quarter.

ServiceNow (NYSE:NOW - Get Free Report) had its target price cut by equities researchers at Robert W. Baird from $125.00 to $118.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has an "outperform" rating on the information technology services provider's stock. Robert W. Baird's price target would indicate a potential upside of 14.39% from the company's previous close.

A number of other analysts have also recently commented on NOW. KeyCorp reduced their price target on ServiceNow from $155.00 to $115.00 and set an "underweight" rating for the company in a research report on Thursday, January 29th. Truist Financial set a $125.00 price objective on ServiceNow in a research note on Wednesday, April 15th. The Goldman Sachs Group dropped their price objective on ServiceNow from $216.00 to $188.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Canaccord Genuity Group set a $200.00 price objective on ServiceNow in a research note on Thursday, January 29th. Finally, Stifel Nicolaus dropped their price objective on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Three analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $170.51.

ServiceNow Stock Performance

Shares of NOW opened at $103.16 on Thursday. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The business has a 50-day simple moving average of $105.55 and a two-hundred day simple moving average of $138.83. The stock has a market cap of $106.89 billion, a price-to-earnings ratio of 61.85, a PEG ratio of 1.68 and a beta of 1.01. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business's quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.04 earnings per share. On average, analysts expect that ServiceNow will post 2.49 EPS for the current year.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 9,641 shares of the stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares of the company's stock, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider directly owned 26,314 shares of the company's stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 16,237 shares of company stock valued at $1,697,162. Insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. IAG Wealth Partners LLC lifted its stake in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC lifted its stake in shares of ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 128 shares during the last quarter. Millstone Evans Group LLC lifted its stake in shares of ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC lifted its stake in shares of ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new stake in shares of ServiceNow in the 4th quarter valued at approximately $25,000. 87.18% of the stock is owned by institutional investors.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 results showed solid revenue growth and ServiceNow raised its annual subscription-revenue outlook, citing strong enterprise adoption of its AI products — a driver for longer-term revenue expansion. ServiceNow boosts annual subscription revenue outlook on strong AI software demand
• Positive Sentiment: Strategic moves broaden product reach: ServiceNow closed the Armis acquisition (adds OT/IoT and agentless asset visibility) and deepened ties with Google Cloud while landing customer wins (e.g., TridentCare) — these support cross-sell and AI/security revenue opportunities. ServiceNow inches up after it closes Armis acquisition ServiceNow and Google Cloud unite AI agents for autonomous enterprise operations
• Neutral Sentiment: Management reiterated that AI boosts productivity (CEO expects to hold headcount flat), which could improve operating leverage over time but leaves short-term margin and execution questions open. AI will boost productivity so ServiceNow won't have to backfill open jobs, CEO says
• Negative Sentiment: Near-term margin pressure: ServiceNow warned the Armis deal will dent operating margins (~75 bps full year; ~125 bps in Q2), which was a key reason the stock sold off after hours. Margin guidance concerns are a primary driver of recent volatility. ServiceNow Posts Revenue Growth, But Says Armis Deal Will Weigh on Margins
• Negative Sentiment: Middle East conflict has delayed several large deals, creating a reported ~75 bps revenue headwind in Q1 and contributing to cautious guidance and investor disappointment. Management expects those deals to close later in the year, so impact is timing-related. ServiceNow flags Middle East deal delays, shares crash
• Negative Sentiment: Sector and sentiment pressure: broader AI-disruption fears and elevated short interest in ServiceNow amplified the reaction to mixed guidance/ margin news, prompting sharp intraday moves in NOW and other software names. US software stocks slide as IBM, ServiceNow results reignite AI disruption fears

ServiceNow Company Profile

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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